Accounting is a detailed record of financial transactions made by a company. It includes recording, analyzing and summarizing all the financial transactions of a business.
Keeping a systemized record book allows you to have a complete overview of a business, and make necessary changes to get better results.
Financial records include: –
a. Income statement:
This statement provides information about profit and loss of a company.
b. Balance sheet:
It is a systematic record of the company’s assets, liabilities and shareholder equity.
It provides brief information about the company’s finances with the date of publication and helps investors get an insight into the company’s financial wellbeing.
c. Cash flow statement:
As the name suggests it’s the total record of cash spent during a particular period. It acts as a link between the balance sheet and the income statement.
Services an accounting firm provides: –
Accounting services prepare the payroll and calculate the taxes. They also take care of other things like withholding and issuing checks.
b. HR management:
Sometimes accounting services assist in the human resource sector. They handle the recruiting, selection and training of the new interns along with managing payrolls.
c. Account processing:
This is one of the additional services provided by the accounting services. It includes issuing payments and producing monthly reports.
d. Help in evaluating the performance of a business:
Financial records provide a clear view of the financial position of a business or a firm. It allows a person to evaluate the profit and loss of a company and make optimal decisions for their business.
e. Track income and expenditure:
It keeps a record of all the transactions and thus helps in budgeting and planning future goals. With all this information you can decide what will be the best decision for your company.
Benefits of accounting services in a business
A lot of businesses fail due to poor financial management and not everyone can handle in-house accounting, one must seek a professional help
Reasons, why your business needs accounting services, are: –
a. Saves time and resources:
Opting for in-house accounting is not a great choice, as you will end up working for several hours. Instead, you can hire an accounting firm that can handle all your accounting issues, which in turn will save your time and resources.
b. Makes the business growth easy:
Accounting gives you a clear idea of the financial situation of your company. Using this information, you can easily make better plans and strategies to grow your business.
c. Ensures all the statutory requirements and regulations:
Unmanaged tax statements can get you into a lot of trouble like penalties and other severe problems. Accounting firms organize all your paperwork and manage payroll, tax statements, and profit and loss statements.
d. Digitize your account:
Manual accounts are hard to store and manage and that’s why accounting services store all the information in a digital format. It is a more feasible and secure option.